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tv   Mad Money  CNBC  October 7, 2009 11:00pm-12:00am EDT

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and even grizzled veterans -- scratch that. especially grizzled veterans can't help but be confused by the action. just take a look at two things that happened today. first we get a fantastic piece in the "new york times," headline, "basic brands on a" goes over all the brands that he says are doing well. then second, family dollar, the ultimate cheapskate tradedown play, reported much better than expected earnings and raised guidance today. even though the stock really didn't do anything. that's all right. it raised guidance at better than expected earnings. and these are two completely contradictory pieces of data. now, if you've ever walked through the doors of the family dollar, then you know that it is
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one big knockoff brand house. many of the house brands are total knockoffs of great national brands. don't take my word for it. nilla wafers? vanilla wafers. potato buds? mashed potatoes. i mean, look at these. you know that these look unbelievably alike. i mean, they all just -- they keep trying. okay? now, these are packaged just to look like premium products. they fool no one. people don't shop at family dollar to be fooled. but to legitimately trade down. it's like those guys who sell the fake watches and sunglasses off the side of the street. only with more overhead. so family dollar doing well tells us that theme are trading down, trying to spend less. now, the brand article isn't a stock ark article at all, but it doesn't matter. it's got a series of fabulous observations about how people are trading up to get great brands.
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they're not trading down because they're trading up because they aren't going out as often as they used to. all the great brands mentioned in the article, kraft, general mills, unilever, heinz products-r precisely what people are supposed to be trading down from if you look at what family dollar's saying. one piece of data's telling us people are trading down. the other says they're trading back up. you can't get a handle on what's right. it's like "chinatown." sister, mother, sister, mother. i mean, forget it, jake, it's too hard even for me to figure out. the same thing happened yesterday. the goldman sachs upgrade of tjx. it was sandwiched between an upgrade of nordstrom's the day before and an upgrade of coke today. what the heck? that's a knuckle sandwich. you go to tjx because you don't want to pay the nordstrom price. you go to coach because you do. so who's right? which stocks are right? normally you would buy one and sell the other. either go with the high end or the low end. but in this bull market both are working. this is a real conundrum. okay?
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these stocks are just acting too strange to really fathom. and it's not just because like alcoa just reported the first good quarter ever and that's odd. no. i'm saying in my 30-year career of picking stocks it has never all worked at once. we're either supposed to be shopping at nordstrom's or shlepping to family dollar. we're supposed to be buying either generic brands, slumming with them, i should say, or high-styling with premium brands. it shouldn't be happening at the same time. i mean, i have to -- i really have to just kind of call on all my investing knowledge, bring in every kind of seer and sage i have, including the fabulous team of investors the black eyed peas to explain to us what's going on. ♪ let's live it up ♪ i've got my money ♪ let's spend it up ♪ let's spend it up >> let's live it up? i've got my money? let's spend it up? or did they mean spend it down?
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i puzzle over it daily. maybe the rich are back spending again, which would explain the runs in tiffany, coach, ralph lauren, and nordstrom, while the middle class is trading down by staying at home and the poor are just family dollaring it. but it's just counter to everything i'm accustomed to seeing in the market. and it's almost impossible not to be confused, which is a big reason why there's so much tension in this market between all the smart people who come on tv and say i don't like the market and people who just say you know what, i've got to go with the program. the old pattern is broken. now we have a new one where retail's bullish for everyone. so how do we play this new set of probabilities? i talked about this trend of a rising tied quizzically lifting all boats with stephanie link, research director for me for that's my charitable trust. we were trying to figure out a way, how can the charitable trust benefit from this bizarre new pattern? what we had realized is that everything's already moved up.
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consider what costco alone did today. up $1.07 off its better than expected quarter. and that can't all be because of my recent purchase of four paris pairs of pants there or my outrageous multiyear buy of all the two-ply i'll ever need. this stock had already moved up five. doesn't matter. just keeps going. how do you come in and buy family dollar? stock i pulled put on the sell block august 11th when it was trading 32, then went as low as 24.62 monday. but it's back to 28.21. ross stores? it's at a three-year high. how can i come in and buy that? tjx. casey general. three-year high. i've got a feeling i'm a little late. fill up my cup, mazel tov. you know what i mean? so what's the plan? do we give up? no. like the playoffs, we wait for our pitch on retail. unfortunately tomorrow morning we'll get a hang curve. we'll get a raw retail sales number that could be very weak, along with a bunch of individual store numbers. and even, by the way-f the number's not weak or not
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cheery-u know what's going to happen. we will get the usual weimar whiners pooh-poohing. there's an image. and telling you hey, this was the last good retail number because these people, the analysts, the pundits who come on our network, the pundits who write and read and talk, they're dreaming of a crummy christmas. these grinches would steal from your portfolio as soon as steal from your stocking. but you know what? as my great, great uncle -- or was he my great, great, great uncle vlad lenin would say, these analysts are useful idiots. they're going to downgrade the group, say negative things that knock the stocks down, and that is going to give you a chance to get into the three-year high stocks or the ralph laurens or the coaches or the nordstroms or the family dollar or the bj's or maybe even costco. boy, that would be great. never fear. the naysayers are, as always, here. as for the resolution to the conundrum posed earlier, how can all these go up at once?
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how can the knockoffs go up and also the trade-ups? when the old pattern would say sell one and buy the other. or as i say in my new book "getting back to even," comes out next week, this market's destroyed tons of the old patterns that have always worked before. ever since the post crash none of the old stuff's working. so maybe the best thing to do is wait until they all go down at the same time and then pick your favorite one. i say don't waste your time on it as the buy point may be tomorrow. here's the bottom line. the high end and the low end of retail are both working. something the conventional stock market wisdom says shouldn't be happening. but the conventional wisdom's been smashed to pieces by this market. just like a bull in a capitalist china shop. so wait for your moment. hopefully, it will come tomorrow when these retailers will likely get the stuffings knocked out of them, then pull the trigger, and feel free to buy both the tradedown plays and the trade-ups. why don't we start with joe in florida? joe. >> caller: jim. a big are you ready, skee-daddy
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boo-yah. >> man, that is a boo-yah of my own heart. obviously a "lightning round" inspired boo-yah. what's up? >> caller: my stock is sears holdings. shld. they don't seem to be participating in the current recovery. is kmart holding them back? and will selling toys again help their bottom line? because retail is creeping up again. i'm playing with market money. >> this is a very tough call. and obviously, we're talking about sears. the old sears roebuck catalog kept on here to remind me how tough that business is. here's the problem, joe. sears is not being kept back by kmart. kmart's actually doing better than sears. of course the people from martha stewart, msl, say it's because of their stuff, which is going to go away from them soon. here's what i think is going to happen. you need a -- i talk about a rising tide lifting all boats. it could conceivably rise for sears, too. but the toughest end of the business, even though i own home
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depot and bought some today for my charitable trust. home depot, lowe's, and sears are uniquely, uniquely involved in the housing cycle, and sears is probably the last that we'll see it turn. i wouldn't bank on sears here. it's too hard. i'd rather see you in home depot. i want to go to the land of the crabs, where i like to go to phillip's crab in maryland. >> caller: big chesapeake bay boo-yah. >> give me a national bow right now. tastes like coming home. that's the iron city beer. >> caller: i'm calling about bank of america. a lot of the stocks in that industry group trade at ten times earnings. and bank of america's earnings are around $4 per share. >> right. >> caller: and the stock is only trading around $17. it looks like a winner to me. >> boy, i'll tell you something. this is a complex issue. but i'm going to try to address it. that's normalized earnings. you're talking about earnings that typically happen in a
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decent stock environment, decent economy. you can't do that. plus there's uncertainty at the top. there's a whole faction on what this guy greg curl, who's the chief risk officer -- of course bank of america took more risk than any other bank. i think moynihan would do a better job. he's a consumer. although because he's a lawyer there's people behind the scenes trashing him as if he was chuck prince. why do i mention all? because until we resolve the succession, until we get a better economy, i think bank of america's going to be stalled. i think the quarter's going to be good, though. which is why i bought some for my charitable trust. but i'm not all in because need to see a better economy to see that $4 number. you're absolutely right to use the $4 number if things are better. if things aren't better, it won't work out that way. but i do like the stock. and if moneyman gets the job, i say you see 20 rather quickly. how about barb in michigan? barb. >> caller: jim, giving you a forever young boo-yah. >> oh, man. can i give you a sorry about detroit's star-crossed whatever you play in sports boo-yah? >> caller: yeah. >> oh, boy, was that tough yesterday. >> caller: that's sports, though.
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you know. >> well, you know, game of life. >> caller: when i was doing my homework, i saw that george soros filed s.e.c. forms for emdeon which must be filed by anyone who acquires more than 5% of a company. this is good, right? >> george soros is a great investor. i don't know the circumstances of thinks buy. i happen to know that general atlantic, the largest shareholder, private equity firm is the best there is. and i think emdeon is a buy. it's a great way to play obama care. i do think that all scripts is better. but i do want to make the point that while soros may be buying what's more important is general atlantic is the investor that brought it public, and i believe in them. all right. i've got a feeling the old patterns are broken. both in the high and in the low end. and i say everything's working. nilla wafers. where are my nillas? and vanilla wafers. wait till tomorrow's -- wait until tomorrow's retail sales
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numbers. we also have some payroll processing numbers that will be bad. the payroll numbers. and i think you're going to get your chance to buy all these at a discount. so get ready to pull the trigger. "mad money" will be right back. mazel tov. ♪ that tonight's gonna be a good night ♪ >> announcer: coming up, with the push for health care reform almost over, is the time right to invest in health care diagnostics? cramer's answer might be your prescription for profits. and later, can you handle the heat? cramer gets you fired up for a searing hot "lightning round." all coming up on "mad money." don!
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♪ all i want is a remedy with the uncertainty of earning season upon us, despite that great number from alcoa to kick it off, we want to own
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stocks that have already been vaccinated against that uncertainty. stocks that have already told you that earnings are better than anticipated. these are the closest things we have to certain winners. because no company preannounces unless it knows it's going to do even better in the future. and you definitely don't preannounce to the up side if you think you're going to disappoint later on. so tonight i've got a health care stock that fits that bill. one that i think is immunized, so to speak, not only on the earnings front but also against the most negative force in the history of health care since hillary clinton -- obamacare. in fact, this company stands a strong chance of benefiting from it, even as its stock has been
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held back by the possibility of health care reform. >> they know nothing! >> i'm talking about covidien. cov. the global health care company that was spun off from tyco back in 2007. ♪ hallelujah tyco was at that point -- >> the house of pain. >> covidien was -- >> the house of pleasure. >> it's a company with three segments. medical devices, the main one representing 58% of sales where it makes endoscopic instruments and monitoring and ventilation gear. pharmaceuticals, 25% of sales. makes both generic and branded drugs. we like the branded. along with contrast material and radiopharmaceuticals. and medical supplies. only 17% of sales. i don't want that to be any bigger because it's most likely commoditized supplies like sharp safety and nursing products. when you think of health care i want you from now on to think of
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covidien, even if i'm pretty sure you've never heard of it until now. when i say covidien's been vaccinated against obamacare, it doesn't make it risk-free. no stock's risk-free. the company has its hands in a lot of different health care pots, medical devices, drugs, medical supplies. but the worst it's facing from the health care bill written by senator max baucus that's currently being debated is a tax on the medical device side of its business. now, that tax would obviously be passed directly on to consumers. kind of like the taxes on your phone bill. so i don't think it would meaningfully impact the company. i like to disclose everything. and according to goldman sachs, only 10% of the earnings are exposed to the baucus plan, making this from the way i see it one of the safest health care plays, or at least safest from washington that's out there. and the up side from health care reform is very real for this company. i've been looking for this,
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waiting for this debate to get to this point to give you a name. covidien has a nice variety of diagnostic and preventative medicine products. and my doctor, dr. lapook, who had a chance to interview president obama about health care in july, has told me time and time again diagnostics are king under this administration. it eliminates waste in health care. that's why we've been doing that all scripts all the time. and everything he has said, everything lapook has said has been backed up by facts by on the cbs network of news sites. i know, i mentioned cbs news network. i'm not a team player. and that's not like me. but you have to be able to learn from your rivals. and also take advice from someone who saved your life and help my sister with her celiac issues, to get down and personal. lapook specifically has told me endoscopic care devices are what's going to benefit. and covidien's got that totally covered. this stock's been held down by obama care but it deserves a higher price to earnings multiple based on diagnostics and its efficiency improving
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products which are favored by the president and the health care bill. i don't just like covidien because it's immunized from washington, though. it's also a health care company doing all the right things, making lots of small tuck-in acquisitions that are additive to earnings and getting rid of its more profitable business lines and making it a leaner, meaner machine. aspect medical systems just announced 200 million in cash. just literally less than a month ago. gives if a nice brain imaging technology that complements the company's existing medical devices. aspect medical's main product is a fantastic system. i've seen it work. that monitors brain activity to ensure that the patients are at the right level of unconsciousness for invasive procedures. that means more efficient health care. look, the most crucial moment in operations, whether you'll come to or not, or whether the anesthesiologist got it wrong. aspect gives the doc a few seconds more than they have to
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make sure the patient's out and make sure the patient can come back. that's the difference between life and death, by the way. trust me on this. aspect's just one of multiple purchases covidien has made along with the way it makes its ultimate life-saving health care company. all these acquisitions are so smart. yeah, this is a smart way to play health care reform. or frankly just health care, period. the company's well positioned to benefit from long-term health care trends like obesity. it's got medical devices that handle single incision laparoscopic surgery, which allows for improved cosmetics, less scarring, reduced wound infections, reduced pain, and faster recovery times. gets people out of the hospital faster. again, one of the main goals of obama's health care reform. this whole sector of stocks has been hammered down to levels that are just too cheap and can't stay that way as soon as the health carry debate is over. again, why i timed this piece for tonight. it's about to end, this debate. oddly, interesting how the debate turns out. covidien is trading at a discount to the already discounted group.
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15.1 times 20 times earnings. the average multiple for large cap medical companies. and an even larger discount to other hospital medical suppliers. i don't get it. this company's a best of breed and it sells more cheaply than the others? that's nuts. considering it's a $42 stock, traded as high as $57 in september of last year, which was a 29% premium to the market. gave it the same valuation as before. this stock would be selling at $52 for that obama care. i think you can go there after the smoke clears from this whole debate. here's the bottom line. covidien's a health care company with all its shots. it's vaccinated against disappointing earnings. it's got its health care reform booster shot, its diagnostic and cost-saving products. it means it's got the health care technology that the president and congress want. remember, either way, as soon as this health care debate ends, i think these stocks are all going to fly. so you need a chit in this game, and the chit is covidien, which trades at a premium, which deserves to trade at a premium to other health care plays, not a discount. and that's why i think covidien is, to put it quite short and sweet --
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>> buy buy buy! >> shawn in virginia. shawn. >> caller: jimbo, here's a mankind boo-yah to ya! mankind loving -- >> you're loving mankind? >> caller: oh, man, you need to give me some. >> shawn, you know, when you first started talking, i thought you might have horse sense. but now, you know, with mankind i've got to tell you, they didn't that insulin -- they this had insulin partnership they were going to announce, they didn't. i have liked this stock for a long time and at $6 i'm not tempted. shawn, our viewers are smart, but i've got to tell you i've got to send you running from this one. let's try texas. let's go to jean in texas. jean.
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>> caller: a big gulf coast boo-yah to ya. >> we've got a lot of boo-yah things going today. how can i help? >> caller: is it safe for cramericans to be in coventry health care, say, versus an mdm or medco? >> no, jean, absolutely not. not only would you be going with the worst of breed in the industry but you're going with the wrong industry. we have already gone off the charts in that group and think those are the worst charts and that's one of the worst plays. >> sell sell sell! >> sorry, i wish i could be a little more bullish, but that's two in a row. let's try charlie in california, see if he's got some good cheer or a better tasting tuna. >> caller: hey, jim, a boo-yah from silicon valley. >> oh, man. a technology guy. how can i help? >> caller: well, i'm not talking about technology today. i was looking to buying some teva. >> the sandals? >> caller: teva, the pharmaceutical. >> that was a joke. i know.
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a little stock joke. yeah, you've got a winner there. this is one miff favorite companies. i alluded to it earlier when i was talking about stocks. this has both generic and it has proprietary, meaning they have their own drugs. this is often considered to be the ideal combination to play the obama health care from the side of pharmaceuticals. i think that's right. i think charlie is not only a tuna with good taste, good-tasting tuna. he's my horse sense name for this particular bloc. if you're looking for health care, because it's almost over at last, the one when the cloud lifts that's going to fly the highest is covidien, cov. it's your remedy for health care reform. after the break i'll try to make you more money. >> announcer: coming up, cramer takes all your questions and gives you the quick-fire responses you so crave. cramericans, we want to hear from you. so send jim an e-mail to and stay tuned for some rewarding replies on "mad mail." and later, feel the thunder approaching as jim takes a
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full-on blitz from cramericans everywhere. can he handle the pressure on a fast-fire "lightning round"? all coming up on "mad money."
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before we get to mail, i've
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before we get to mail, i've got some homework to take care of. yesterday shawn from indiana, clearly a very smart viewer, stumped me, making this guy look like a complete and total chump. or even a clown along the lines of the great bozo. if not krusty. asking about heartland payment systems, simple hpy. so as usual, when i get asked a question i can't answer, i went back and did the homework in order to come up with a verdict on the stock. heartland payment system is a credit and debit processing services company that also does payroll and check management for all kinds of merchants. the stock got hit hard in january, when the company announced a security breach that
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happened in late 2008. it looks like heartland payment could potentially be liable for the breach, but the big unanswered question is how much are they on the hook for? otherwise, business looks like it bottomed as the company beat by a penny in its most recent quarter and management indicated business is stabilizing. sales the worst in heartland's history but the numbers were still better in each month of the quarter compared to the previous month. most important, merchant and volume attrition rates have become stable. so where do i come down on this one? you know, it looks like a good story. it's awful hard to rate this one, though, at least anything other than pure speculation, until we get more clarity on the kind of liabilities the company will face from the security
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breach. remember the way the stock market works. okay? money managers don't want to go worry at night about what stock they own. they want to sleep at night. they don't want to pick up the paper in the morning and read about your company's liability for security issue. it's way too dangerous for most of them to own. and therefore, i don't think you should buy it either. how about some e-mail? this one frs martin in massachusetts. "dear jim, you always seem bullish on verizon, vz. i know it has a good dividend, but the stock value never seems to move much. i've owned it for several years, and i am hoping it may claw its way back up. do you think it has much hope, or should i just sell and buy something else with more tsunami potential? martin, if you want tsunami potential, it is not the stock to own. i admit to that. apple is a better stock to own in this situation. you know i had tessera tech. that's a -- tsra. that's a better way. what i like about verizon is i
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do like the yield. they're paying you to wait for when the corporate business turns around. in the meantime i think it's well run. i've been saying either verizon or att for that good yield. and when things get better in the economy they will go up. but neither is a good tsunami play versus apple. everybody keeps raising their earnings estimates, as predicted. here's one from caroline. also from massachusetts this time. in boston. "hi, jim. my question is about metals. gold is crazy high, while silver is on the rise. if you believe the analysts' projections, copper's the next hidden gem in metals. but they've been wrong before. so what do you think about investing in cop, and how should we do it? thank you for all your insightfulness. looking forward to hearing your response. all right. caroline, i want to distinguish, silver and gold are precious metals. silver's got some industrial uses. gold obviously has a jewelry use. but those are not commonplace uses in the sense that they're
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not building blocks for houses or building blocks for buildings. that's what copper is. copper is purely an economic play, particularly a chinese play. 30% of the copper in this world is used by china, only 10% by the united states. so i'll regard it as a china play. if you think china's going to continue to be strong, you should own fcx. freeport, that's the best copper play. i don't at this level want to own it. i'd like to wait for a pullback. here's one from mark. "cramer, first off, i'd just like to say that you're great." thank you, mark. "i have all of your books and i just keep reading them over and over again to drive your teachings home.
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i've preordered your new book already and i look forward to adding it to the reading rotation." in "watch tv get rich" you stated how latin america is always a trade because that's how the big guys view it. does that still hold true? thanks and keep up the energy. latin america bounced back faster which is terrific. one of the reasons i've been saying banco santander is good. but most important, thanks so much for the kind words. in the next book "getting back to even" i show you everything i did at my hedge fund. i've never revealed most of this stuff. it's harder but it's what you need if you want to get back to even. stay with cramer. >> announcer: coming up, the madness goes nationwide. >> a big buffalo boo-yah. >> from the scorching deserts of west texas. >> from southern california. >> and jim stakes your calls from all across -- >> 110 degree boo-yah from phoenix, arizona. >> boo-yah from seattle. >> announcer: in an all new quick-fire "lightning round." and later, whether the dow soars or hits the floor, jim helps you try to stay on steady ground with "am i diversified?" all coming up on "mad money." "squawk box" rewind.
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>> we are coming to you live from the house education and labor committee hearing room. >> 70% of all jobs are created through small business. we've got to get america working again. >> if we don't have the economy and jobs solved, we can't really get to cure health care. >> executive pay. >> france and germany are ahead of us. they want to put caps on. >> the majority wanting to emulate france and germany in about everything they do. >> "squawk box." where business turns first. weekdays at 6:00 a.m. eastern on cnbc. ♪ yes, you're lovely... ♪ what do you think?
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hey, why don't we use our points from chase sapphire and take a break? we can't. sure, we can. the points don't expire... ♪ there is nothing for me... ♪ there's no travel restrictions... we could leave tomorrow. we can't use them for a vacation. you can use the points for just about anything. i know... ♪ the way you look tonight ♪ chase what matters. get your new chase sapphire card at that's progressive.
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call or click today. it is time. it is time for the "lightning round" on cramer's "mad money." what's that all about? that's right. you say the name of the stock, i tell you whether to buy buy buy or sell sell sell. just to be clear i do not know the callers or the stock questions ahead of time. my staff prepares the graphics on the fly. we play until you hear this sound -- and then the "lightning round" is over. are you ready, skee-daddy? it is time for the "lightning round" on cramer's "mad money." let's go with laura in my home state of new jersey. laura. >> caller: jim cramer, how are
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you? boo-yah. >> holy cow, i'm doing just fine. how about you? >> caller: i'm great. listen, i'm managing money for my son's college fund. his name's john. we watch you every night. he wants to give you a great big boo-yah. >> bring it on >> caller: boo-yah, jim! >> i love it. >> caller: listen, this is the difference between harvard and brookdale. we need your help here. >> listen, i'm all over it. i was a scholarship kid. i didn't pay a dime to go to harvard. i'm thrilled. so go ahead. >> caller: oh, man. you're my hero. this is what we need to do. listen, got in the market in the beginning of april. rode it all the way up. got crazy when rimm got hit. sold everything. i'm out of the game because i know nothing! >> no, come on. don't denigrate yourself. you are learning and learning and learning. i don't want to hear that again. i don't want to hear that. come on, home stater. >> caller: all right. i need to know, tsunami, tech tsunami, in or out? should i get in or should i sit on the sidelines?
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>> well, what stock do you want to play it with? >> caller: palm. >> with palm? >> caller: p-a-l-m. >> i think you're okay. there's a lot of dispute over whether verizon will support palm. i think they will. right now sprint supports palm. i think once palm gets applications you're in good shape. i mention it in my new book "getting back to even" that comes out next week that i think palm is a long-term winner in the internet tsunami. i bless it. now, let's be sure. you're out of the game. that's a speculative stock. i don't want you to put all your eggs in one basket. that's important. let's go to sylvester in florida. sylvester! >> caller: mr. cramer, big warm greeting from the little city of lauderhill. >> love it. why not? but it's jim pup don't need v. to call me mr. cramer. >> caller: me and roxie want to know what your take is take is on american axel. >> i want to play the auto bill. i think mine is safer than yours. i would be careful with yours. i know a $6 stock is tempting but -- >> don't buy. >> tony in old minnesota. they've got to be happy in -- i wish i were from minnesota for a
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couple days. tony. >> caller: boo-yah, mr. cramer, from the land of 10,000 lakes. >> congratulations on every single victory you've had in the last 48 hours. what's up? >> caller: thank you. i also want to thank you for taking the time to help us home gamers. >> sure trying, my friend. i think you'll like the next book because it's all about how to make money at home. what's up? >> caller: skyworks. swk -- >> it's bothering me. it's bothering you, i'm sure. internet tsunami. they make some small amplifiers in all the little cell phones. i have done my best to try to figure out what's dogging this stock because they preannounced better in september. i say we want to see what the quarter is. we'll see what david aldrich has to say. in the interim i don't like the way the stock acts. i think it's okay. my friend brian axenberg, who does breakout, we
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both feel it's right, but i don't think there's any harm at all in waiting to hear what david aldrich has to say when they report. let's go to james in california. james! >> caller: boo-yah, jim. james in california. >> excellent. what's the stock? >> caller: oh, okay. >> go ahead. >> caller: go ahead? >> yeah, i'm here. i don't know the stock, sir. >> caller: top of the die boo-yah, jim, from james in california. what is your value on ale? it's a utility company in minnesota. >> i am familiar with it. it's got a yield less than kinder morgan partners, kmp, another utility that leads -- i used to call it alouetta. but it's ale. i've got better ones. i say no to that. i've got another jerseyite. and you know how much i love jersey. i'm going to, and i may mispronounce, it but that's just my lot in life.
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to zafer in new jersey. >> caller: big boo-yah, jim. what do you think about alcoa? even with the earnings today. >> alcoa just reported the first good quarter i've seen in ages. i think the stock's got up side. reminds me of international paper when they turned around. alcoa i think can trade, yes, to the high teens. i want to pull the trigger. i've got to find out more, but that's my supposition right now. i was wrong on yum. i didn't listen to the conference call, and i prejudged. i really need to listen to the conference call alcoa but from the looks of things i like what i see. tim in texas. tim. >> caller: tim, boo-yah from south texas. >> man, south texas. we've been there, we loved it. what's up? >> caller: med. medifast. >> fits exactly the profile we want in obamacare.
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this is a company that can make, well -- it's a battle. we know we want people thinner. 52-week high. i'd like it to come down, though, before i -- >> don't buy. >> -- pull the trigger. before i end the "lightning round," may i just please point out that i need to you check out tonight's trivia question and stick with cramer! what's on the minds of independent investors? let's ask. when you're trading a stock, every penny counts. i hate when the trade is done and you find out you paid more than the quote price. i want it at the price i expect... or better.
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our way of life depends on developing all forms of energy. and to use less of it. it's time to put our differences aside. will you be part of the solution? chevron. human energy. uh... yeah? you gonna ask him this time? about what? our erectile dysfunction. don't want to talk about it. look, you're not alone, millions of men with ed have talked to their doctors. i don't know... we can do this. okay... (announcer) talking to your doctor about ed may be the last thing you want to do, but it's definitely a conversation worth having. twenty million men have had their viagra talk. when you're ready for yours... you'll find helpful tips on talking to your doctor at ask your doctor if your heart is healthy enough for sex. don't take viagra if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. side effects may include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury,
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seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. talk to your doctor today... and ask if viagra is right for you. when i tell you i think you should own a stock, right? i mean, i say i like -- apple's a buy, that's a good example. it doesn't mean you should put your whole fund, your portfolio should only be apple. no. no eggs in one basket. even if you're positive it will go up. remember, i think apple's going
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to 264. uh-uh. i won't have any of that. diversification is the only free lunch. and that's why every wednesday we play "am i diversified?" you call, you tell me your top five holdings, and i tell you if your portfolio's diversified enough or if you need to mix it up a little. why don't we start with joe in louisiana? joe. >> caller: mr. james cramer, this is joe collar from beautiful downtown chalmette, louisiana, ground zero for hurricane katrina. >> i hope you guys recovered. >> caller: a heartfelt thank you to the thousands of volunteers who came down here and helped us with the rebuilding and continue to do so today. i'd like to welcome you with an open invitation to come join us anytime down here for some great seafood and also a laissez les bon temps roulez boo-yah. >> thank you. i help through the boys and girls club -- yeah, that's where i -- from baton rouge. >> caller: that's fantastic. >> thank you. >> caller: well, we're coming back strong down here with an unemployment rate of 4% right now. so we're doing good.
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>> smoking. but let's -- >> caller: let's play "am i diversified" jim. >> let's play. >> caller: bcs, barclay. >> hmm. >> caller: ford, f.
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let's go to shaer in colorado. >> boo-yah from the colorado springs. we love your show. we lot of your book. >> cash flow queen. i like that. >> caller: you got it. here are my stocks. b.a., boeing, brkr, brooker bioscience, thu, china unicom, nat, nordic america tanker, p.o.r., portland general electric. jim, i am diversified? >> tricky. this is a tricky portfolio. okay? first, china unicom, i own that for my travel trust. it is a mobile internet tsunami play in chooirn because they've got an apple distribution.
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brukr is a life science. that's spek, though. that's spek. boeing, you know i like that. i didn't think anything of the charge they added. this is a multi-year story. you want to get ahead of that. portland general is a good yield, and this is what i was struggling. in order ek america american tanker bought 17 ships two days ago. i am concerned that if day rates continue to go down for ships, that dividend will not -- you won't be able it pay the big di thend that i like. we have a shipping company, a chinese teleco play, life science, aerospace, and utility. i regard that as properly diversified. ♪ hallelujah >> i want to go to dave in arizona. dave. >> caller: heavy, jim. big bingo boo-yah from phoenix. >> bingo. bingo. krimplts hey, here are my five picks. number one, dupont, ticker symbol dd. number two, bristol-myers, bmy.
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number three, british petroleum, bp. number four, verizon, dz, and number five texas eastern product pipeline. take every ticker symbol ppp. am i diversified? >> all right. first of all, i want to congratulate dave because i'm going to explain to what dave has got going here. he has something that you at home must consider to be a great way to invest. all right. what do these have in common? we look at this. do we say -- this is a utility company. this is a diversified manufacturer. this is a drug company. this is an oil company and no, no, no. this is a hom high yielding, high yielding play. it is terrific. dupont, the highest yielding chemical company with the safest divide dividend. i think it's very safe. it's good. bristol-mye bristol-myers, that's one of the highest yield iing companies. bp, the highest yield iing
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petroleum company that i own. we have fabulous yield plays te llc o, oil, drugs, manufacturer, pipeline. that is the best portfolio we've had in ages ol am i diversified? mad money is back after the break. ( inspiring music playing )
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someday, cars will be engineered using nanotechnology to convert plants into components. the first-ever hs hybrid. only from lexus. or just one brita faucet filter. - ( plinks ) - brita. better for the environment and your wallet. you want faster ground shipping. someday, the driver will get to choose
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how efficient or powerful their car will be. the first ever hs hybrid. only from lexus.
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you can buy either one. i like to say there's always more -- i promise to feepd it for you here on "mad money." i'm jim cramer. i'll see you tomorrow. this is a honda pilot. and this is the chevy traverse. it has more cargo space than pilot.
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muscle ache. to avoid long term injury seek immediate medical help for an erection lasting more than 4 hours. man: if you have any sudden decrease or loss in hearing or vision stop taking cialis and call your doctor right away. announcer: today you have options, 36-hour cialis or cialis for daily use. ask your doctor about cialis today so when the moment is right, you can be ready. we're shopping for car insurance, and our friends said we should start here. good friends -- we compare our progressive direct rates, apples to apples, against other top companies, to help you get the best price. how do you do that? with a touch of this button. can i try that? [ chuckles ] wow! good luck getting your remote back. it's all right -- i love this channel. shopping less and saving more. now, that's progressive. call or click today.
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this is a cnbc special event. they trusted him with their future. >> it was so far out of my head that anything like that would happen to someone like bernard madoff. >> they trusted him with their lives. >> he betrayed them. >> a 71-year-old man beyond reproach. bernie madoff. the man who made so many so rich for so long. the man who gave millions to charities and invested millions more on their behalf. >> the money disappeared. there's nothing to recover. >> gone. >> i've always expected madoff to blow. >> gone. >> that would have been my nest egg but gone. >> $65 billion lost, in the biggest ponzi scheme ever. how did he do it? where is the money? and how did it go on for so


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